I bet there will be fewer online casinos next year?
Pimlico Racecourse. The name evokes the great names in horse racing that have thundered on its track over the decades – Man o’ War, Seabiscuit, Secretariat – and, as the 2022 Preakness takes place this weekend at the iconic Baltimore course, Sports betting is on the table like never before.
Second leg of the three-way title known as the Triple Crown, awarded to the thoroughbred who wins the Kentucky Derby, the Preakness and the Belmont Stakes, the race on Saturday May 21 comes at a time when online sports betting is exploding – for “bettor” or worse.
Legal sports betting is booming, currently allowed in 35 US states and the District of Columbia. Along with this legalization comes a host of new apps and players grappling with the category’s workhorses – FanDuel and DraftKings – for some of the action.
Part of the mix from time immemorial and up to today is your friendly neighborhood bookie, taking illegal bets and playing with the payouts and economics of this booming business.
On Thursday, May 18, FanDuel Group CEO Amy Howe told the Wall Street Journal: “There is still a huge black market. [that’s] hard to quantify exactly but probably in the trillions of dollars. As this black market persists, states do not reap the economic benefits. Consumers are not protected.
Did she say “billions”? It’s a horse of a different color, and it’s not the only aspect of sports betting that is attracting skeptical eyes as bettors contemplate the future of online betting.
See also: US Sports Betting Market Too Saturated, Says New FanDuel Chief
A strange thing about Triple Crown betting this year was the announcement in February by Churchill Downs, home of the Kentucky Derby, that it was ceasing most of its online betting.
Racing industry news site Blood Horse reported: “In a February 24 conference call with analysts and investors, Churchill Downs Inc. CEO Bill Carstanjen said the The company’s continued efforts in online sports betting and iGaming didn’t make economic sense because it doesn’t see much. opportunity for growth or shareholder return in a highly competitive market.
It is competitive, and still in its infancy. Since we’re talking about Pimlico and its home state of Maryland, check out legislation such as House Bill 940, which seeks to limit the number of mobile sports betting licenses the state will issue, and collect fees from operators for state coffers.
FanDuel’s Howe had pointed out months earlier that there were too many digital betting parlors in the picture.
Don’t tell rival DraftKings, which just shelled out $1.5 billion in early May to complete its acquisition of online casino Golden Nugget (GNOC).
During a first quarter earnings conference call on May 6, DraftKings CEO Jason Robins said that “the strategic rationale for the deal was really for us to be able to grow the audience that we could achieve. What we found is that the DraftKings brand is very strong with a certain demographic of customers, especially those who are sports fans. It’s really more like a sports brand.
Gallop for big payouts
It’s early in the trend, but later than some might think, as states weigh the social impacts of gambling against tax revenue, tourism and jobs created by racetracks and, to a lesser extent, the apps.
Taken together with the feeling that online and mobile betting attracts a core of enthusiasts, there is speculation that this can only grow far beyond them. This could see much of the online expansion end in mergers and acquisitions activity not far away.
Since none of these incredibly pressing trading questions will be answered this weekend, let’s instead take a look at the favorites, the odds and the payouts the winners stand to receive in the form of lucrative purses for these three epic races.
FanSided reported in May that “For the fourth consecutive year, the Kentucky Derby purse will be $3 million. The main event winner will take home $1.86 million, or more than 60% of the total purse.
He added that “neither the Belmont [nor] the Preakness pays just like the Derby. The Preakness is expected to drop $1.5 million and the Belmont $1 million when it runs on Long Island on June 11.
The winner of Preakness will pocket around $900,000.
Now is the time to place your bets, so we’ll let the experts handicap.
As seen by CBS Sports, “Epicentre is the favorite to win this sum at 6-5 in the latest 2022 Preakness Stakes odds. Three other 2022 Preakness Stakes horses have single-digit odds, including Early Voting (7-2) and Secret Oath (9-2).
The 2022 Preakness Stakes post time is 7:01 PM Eastern Time.